Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Mary is planning to travel to a country where there is some risk of contracting malaria.The market price for the medication that prevents malaria is

Mary is planning to travel to a country where there is some risk of contracting malaria.The market price for the medication that prevents malaria is $400 (the preventative medicine is not covered by insurance).It would take her 2 hours to visit her doctor and get the prescription filled.The opportunity cost of her time is $50/ hour.

If she contracts malaria we assume that she will be sick for two weeks and unable to work.Expenses for medication, doctors' visits, and lab tests to treat the malaria will be $1500.She will lose wages and benefits of $1000 for each week she is away from work.Assume the cost of the pain and suffering is $2000.

Mary believes that her chance of getting malaria without preventative medicine is about one in 10.

What is the maximum price that Mary would pay if insurance covered the full cost of treatment if she got malaria?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Dynamic Business Law

Authors: Nancy Kubasek

1st Edition

0073524913, 9780073524917

More Books

Students also viewed these Economics questions

Question

The fear of making a fool of oneself

Answered: 1 week ago

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago